John E. Sokolowski-Imagn Images
Once players have the freedom to choose their destination, several factors come into effect when making decisions on where they want to play. After spending nine years on Long Island, John Tavares passed up on re-signing a max deal with New York and a $13 million a year offer from San Jose to sign with the hometown Toronto Maple Leafs.
With others, the focus is getting paid the most in an all-too-short professional career, and one of the biggest factors is the tax situation in particular locations. In a piece on Hockey and Taxes in The Hockey News this week, the difference in the amount of taxes between the highest rate with the Montreal Canadiens and the lowest with the Seattle Kraken is nearly 13 percent.
Related: Hockey & Taxes: What An NHL Player Pays In Taxes Depending On Their Team
This could affect where prominent pending unrestricted free agents end up this summer. Here is a look at four UFA’s, whether they are well positioned to get a raise in free agency and what the difference will be if they stay with their current club or head to another destination.
Mitch Marner, RW, Toronto Maple Leafs
Salary – $10.903 million with Toronto in 2024-25
Tax – 52.32 percent (Second in the NHL)
Current salary after taxes – $5.198 million
Raise – Yes
Estimated salary – $13 Million
Team(s)
Toronto (Salary after tax of 52.32 percent) – $6.198 million x 8 years = $49.584 million
Utah (24th in the NHL) (Salary after tax of 43.60 percent) – $7.332 million x 7 years = $51.324 million
Vegas (27th in the NHL) (Salary after tax of 40.51 percent) – $7.733 million x 7 years = $54.131 million
Nashville (29th in the NHL) (Salary after tax of 40.29 percent) – $7.762 million x 7 yrs = $54.334 million
Marner is currently tied for fourth in the NHL in scoring with 59 points, and along with Mikko Rantanen, could be the top target on July 1. Teams that were rumored to have interest last summer in trading for Marner were Utah, Nashville and Vegas. The chances of a trade before the deadline is virtually non-existent since Marner has a no-movement clause, and that makes Leafs GM Brad Treliving’s situation difficult in terms of getting him re-signed.
The Athletic’s Pierre LeBrun suggested last week that the Leafs do not want to go past Auston Matthews’ $13.25-million salary with Marner. Toronto’s only advantage is having the option of going an eighth year on a new deal, but if every club offered the $13 million that LeBrun suggested, he would make more money on a seven-year deal in all the given destinations than in Toronto on a max contract.
Related: North Power: All Seven Canadian NHL Teams Are Pushing For A 2025 Playoff Spot
Sam Bennett, C, Florida Panthers
Salary – $4.425 million with Florida in 2024-25
Tax – 40.28 percent (30th in the NHL)
Current salary after taxes – $2.642 million
Raise – Yes
Estimated Salary – $7 million
Team(s)
Florida (30th in the NHL) (Salary after tax of 40.28 percent) – $4.179 million x 8 years = $33.43 million
Colorado (26th in the NHL) (Salary after tax of 43.29 percent) – $3.96 million x 7 years = $27.78 million
Dallas (28th in the NHL) (Salary after tax of 40.34 percent) – $4.176 million x 7 years = $29.23 million
Bennett is a Stanley Cup winner, a center and someone who plays with boundless energy and a physical edge. Florida is once again a contender, which might mean that GM Bill Zito will keep him past the trade deadline for another playoff run and work on re-signing before July 1, but the risk is not getting anything done and losing him in free agency. Sportsnet’s Nick Kypreos reported that Western Conference contenders Dallas and Colorado are interested in dealing for the 28-year-old center if the Panthers opt to deal him.
Florida’s main advantage is giving Bennett an eighth year and having the third-lowest tax rate in the league, with Colorado and Dallas having very similar rates.
Marcus Pettersson, D, Pittsburgh Penguins
Salary – $4.025 million with Pittsburgh
Tax – 44.05 percent (22nd in the NHL)
Current salary after taxes – $2.251 million
Raise – Yes
Estimated salary – $5.5 million
Team(s)
Pittsburgh (22nd in the NHL) (Salary after tax of 44.05 percent) – $3.07 million x 4 years = $12.309 million
Dallas (28th in the NHL) (Salary after tax of 40.34 percent) – $3.28 million x 4 years = $13.12 million
Edmonton (15th in the NHL) (Salary after tax of 47.01 percent) – $2.91 million x 4 years = $11.65 million
The likelihood of the 28-year-old blueliner being moved rests on the Penguins staying in contention for a playoff spot prior to March 7. If Pittsburgh falls back in the Eastern Conference wild-card chase and there is no chance of re-signing Pettersson, then it is likely GM Kyle Dubas will move the lefty defender for the biggest haul he can get.
Western contenders Dallas and Edmonton are both looking for defensive reinforcements before the deadline. Using the free agent deal of Matt Roy with Washington (six years x $5.75 million), the two are similar in age and style, but Roy is right-handed and would make slightly more on the market. The Stars would have a slight advantage based on Texas having no individual state income tax, as opposed to Alberta’s higher rate.
Related: With Latest Points Surge, Is Penguins’ Crosby A Hart Trophy Front-Runner?
Trent Frederic, C, Boston Bruins
Salary – $2.3 million with Boston
Tax – 45.78 percent (17th in the NHL)
Current salary after taxes – $1.24 million
Raise – Yes
Estimated salary – $5 million
Team(s)
Boston (17th in the NHL) (Salary after tax of 45.78 percent) – $2.71 million x 5 years = $13.55 million
St. Louis (20th in the NHL) (Salary after tax of 44.75 percent) – $2.76 million x 5 years = $13.81 million
Big, bruising centers like Frederic are sought after around playoff time (especially those with post-season experience), and coming off a pair of seasons scoring in the high teens, the Bruins will be looking to cash in on a deadline deal if they can’t get him re-signed at their price.
The St. Louis-born Frederic has long been connected to the hometown Blues, and the tax rate in Missouri is slightly more favorable than in Massachusetts.
Get the latest news and trending stories right to your inbox by subscribing to The Hockey News newsletter here. And share your thoughts by commenting below the article on THN.com or by visiting our forum.
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